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Hillary Clinton has been busy touring the Gulf region to build support against Iran's nuclear project and step up pressure in favour of sanctions. Image Credit: AP

Dubai: Israel's refusal to halt colony expansion on Palestinian land undermines the mutual trust needed for peace talks and hurts US efforts to mediate the conflict, US Secretary of State Hillary Clinton told the largest pro-Israeli interest group in the US on Monday.

Addressing some 7,500 delegates of the American Israel Public Affairs Committee (AIPAC) Clinton expressed the usual "unequivocal" support for Israel, but also spoke firmly on the need for Israel to make "difficult but necessary choices" if it wants a peace agreement with the Palestinians and warned them that the current status quo was "unsustainable".

Clinton urged Israel to ease the humanitarian crisis in the Hamas-led Gaza Strip, which is under tight Israeli restrictions.

Clinton also accused the Palestinians of inciting violence by calling the re-opening of a synagogue in occupied Jerusalem's old city as an attack on Muslims.

"It is purely and simply an act of incitement," she said. "These provocations are wrong and must be condemned for needlessly inflaming tensions and imperiling prospects for a comprehensive peace."

The United States had previously rejected the Palestinian criticism of the re-dedication of the historic Hourva synagogue.

Israeli Prime Minister Benjamin Netanyahu was to meet later with President Barack Obama.

EU condemns Tel Aviv

The European Union yesterday condemned Israel's intent to continue building in occupied east Jerusalem, saying it represents a roadblock to international peace efforts.

"The European Union has condemned all the settlement [colony] activities," said Spanish Foreign Miguel Angel Moratinos, whose nation holds the EU's rotating presidency. "We ask for a total freeze of settlement [colony] activity. We will pursue this policy."

"The Netanyahu announcement is completely, utterly unacceptable," Finnish Foreign Minister Alexander Stubb said.

British Foreign Secretary David Miliband said the EU message to Israel was clear.

"The settlements [colonies] are illegal as well as being a roadblock on the road to security and justice for Palestinians and Israelis which will come through a two-state solution," he told journalists.

Visiting Israeli Foreign Minister Avigdor Lieberman was due to meet individually with the foreign ministers of Finland, Germany, Lithuania and Malta, but not with the entire 27-member body.]